News Release

BANGKOK--(BUSINESS WIRE)--Feb. 5, 2018--
Fabrinet (NYSE: FN), a leading provider of advanced optical packaging
and precision optical, electro-mechanical and electronic manufacturing
services to original equipment manufacturers of complex products, today
announced its financial results for its second quarter ended December
29, 2017.

Tom Mitchell, Executive Chairman of Fabrinet, said, “We are pleased to
have exceeded both our revenue and net income guidance for the second
quarter. We are enthusiastic about the fresh perspective Seamus brings
to our team for driving opportunities from all our end markets as we
look forward.”

Seamus Grady, Chief Executive Officer of Fabrinet, said, “Having
recently met with customers worldwide, I am looking forward to extending
Fabrinet’s track record of success. We believe that over the longer-term
we remain well-positioned to drive balanced and profitable growth from
our core optical communications market as well as other industries that
can leverage our precision optical, electro-mechanical and electronic
manufacturing reputation.”

Second Quarter Fiscal Year 2018 Financial Highlights

GAAP Results

Revenue for the second quarter of fiscal year 2018, was $337.1
million, compared to revenue of $351.2 million for the comparable
period in fiscal year 2017.

GAAP net income for the second quarter of fiscal year 2018 was $19.3
million, compared to GAAP net income of $25.3 million for the second
quarter of fiscal year 2017. GAAP net income for the second quarter of
fiscal year 2018 included a foreign exchange loss of $1.3 million, or
$0.04 per diluted share, compared to a foreign exchange gain of $1.9
million, or $0.05 per diluted share, for the second quarter of fiscal
year 2017.

GAAP net income per diluted share for the second quarter of fiscal
year 2018 was $0.51, compared to GAAP net income per diluted share of
$0.67 for the second quarter of fiscal year 2017.

Non-GAAP Results

Non-GAAP net income for the second quarter of fiscal year 2018 was
$27.3 million, compared to non-GAAP net income of $34.5 million for
the second quarter of fiscal year 2017.

Non-GAAP net income per diluted share for the second quarter of fiscal
year 2018 was $0.72, a decrease from non-GAAP net income per diluted
share of $0.91 for the same period a year ago. Non-GAAP net income for
the second quarter of fiscal year 2018 included a foreign exchange
loss of $1.3 million, or $0.04 per diluted share.

Share Repurchase Program Increase

Fabrinet also announced that its Board of Directors has approved the
repurchase of up to an additional $30.0 million of Fabrinet’s ordinary
shares, bringing the aggregate authorization under Fabrinet’s existing
share repurchase program to $60.0 million. Fabrinet repurchased
approximately 316,000 shares of its ordinary shares at an average price
of $31.36 during the second quarter.

Business Outlook

Based on information available as of February 5, 2018, Fabrinet is
issuing guidance for its third fiscal quarter ending March 30, 2018, as
follows:

Fabrinet expects third quarter revenue to be in the range of $316
million to $324 million.

GAAP net income per diluted share is expected to be in the range of
$0.50 to $0.53, based on approximately 37.9 million fully diluted
shares outstanding.

Non-GAAP net income per diluted share is expected to be in the range
of $0.70 to $0.73, based on approximately 37.9 million fully diluted
shares outstanding.

This press release and any other information related to the call will
also be posted on Fabrinet’s website at http://investor.fabrinet.com.
A recorded version of this webcast will be available approximately two
hours after the call and will be archived on Fabrinet’s website for a
period of one year.

About Fabrinet

Fabrinet is a leading provider of advanced optical packaging and
precision optical, electro-mechanical, and electronic manufacturing
services to original equipment manufacturers of complex products, such
as optical communication components, modules and subsystems, automotive
components, medical devices, industrial lasers and sensors. Fabrinet
offers a broad range of advanced optical and electro-mechanical
capabilities across the entire manufacturing process, including process
design and engineering, supply chain management, manufacturing, advanced
packaging, integration, final assembly and test. Fabrinet focuses on
production of high complexity products in any mix and any volume.
Fabrinet maintains engineering and manufacturing resources and
facilities in Thailand, the United States of America, the People’s
Republic of China and the United Kingdom. For more information visit: www.fabrinet.com.

This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements include: (1) statements regarding our ability to continue to
drive profitable growth; and (2) all of the statements under the
"Business Outlook" section regarding our expected revenue and GAAP and
non-GAAP net income per share for the third quarter of fiscal year 2018.
These forward-looking statements involve risks and uncertainties, and
actual results could vary materially from these forward-looking
statements. Important factors that could cause actual results to differ
materially from those in the forward-looking statements include, but are
not limited to: less customer demand for our products and services than
forecasted; less growth in the optical communications, industrial lasers
and sensors markets than we forecast; difficulties expanding into
additional markets, such as the semiconductor processing, biotechnology,
metrology and materials processing markets; increased competition in the
optical manufacturing services markets; difficulties in delivering
products and services that compete effectively from a price and
performance perspective; our reliance on a small number of customers and
suppliers; difficulties in managing our operating costs; difficulties in
managing and operating our business across multiple countries (including
Thailand, the People's Republic of China, the U.S. and the U.K.); and
other important factors as described in reports and documents we file
from time to time with the Securities and Exchange Commission (SEC),
including the factors described under the section captioned “Risk
Factors” in our Quarterly Report on Form 10-Q, filed on November 7,
2017. We disclaim any obligation to update information contained in
these forward-looking statements whether as a result of new information,
future events, or otherwise.

Use of Non-GAAP Financials

We refer to the non-GAAP financial measures cited above in making
operating decisions because they provide meaningful supplemental
information regarding our ongoing operational performance. Non-GAAP net
income excludes: share-based compensation expenses; depreciation of fair
value uplift; executive separation costs; expenses related to our CEO
search; amortization of intangibles; business combination expenses; loss
(gain) on foreign currency contracts; amortization of debt issuance
costs; and restructuring charges. We have excluded these items in order
to enhance investors’ understanding of our underlying operations. The
use of these non-GAAP financial measures has material limitations
because they should not be used to evaluate our company without
reference to their corresponding GAAP financial measures. As such, we
compensate for these material limitations by using these non-GAAP
financial measures in conjunction with GAAP financial measures.

These non-GAAP financial measures are used to: (1) measure company
performance against historical results, (2) facilitate comparisons to
our competitors’ operating results, and (3) allow greater transparency
with respect to information used by management in making financial and
operational decisions. In addition, these non-GAAP financial measures
are used to measure company performance for the purposes of determining
employee incentive plan compensation.

The following table provides a reconciliation of cash, cash
equivalents and restricted cash reported within theunaudited
condensed consolidated balance sheets that sum to the total of
same amounts shown in theunaudited condensed consolidated
statements of cash flows:

(amount in thousands)

As ofDecember29, 2017

As ofDecember30, 2016

Cash and cash equivalents

$

134,831

$

85,619

Restricted cash in connection with business acquisition(non-current
assets)